Gardner Denver, Inc. (GDI: 48.11 0.00 0.00%) is seeing what you'd expect in a global recovery: increased demand. The company is expected to grow earnings by an average of 20% over the next 5 years.
Gardner Denver manufactures reciprocating, rotary and vane compressors, liquid ring pumps and blowers for various industrial and transportation applications, pumps used in the petroleum and industrial market segments, and other fluid transfer equipment serving chemical, petroleum, and food industries.
Gardner Denver Surprised by 14% in the Second Quarter
On July 22, Gardner Denver reported second quarter results which saw organic order growth jump 38% compared to the year ago period while revenue rose 3%. The order improvement was across all segments.
"The global demand environment continues to show modest improvements on an organic basis," said Barry L. Pennypacker, President and Chief Executive Officer.
"The improvement continues to be generally broad-based and we have not seen any signs that this recovery is atypical from previous cycles," he said.
"We continue to experience improving demand for OEM products and aftermarket parts and services and are benefiting from accelerating demand for petroleum products and related aftermarket parts and services, primarily due to the investments in well servicing pumps used in fracturing shale formations," he added.
Zacks Consensus Estimates Climb
Gardner Denver expects full year earnings per shape to be in the range of $2.87 to $2.97. Given the earnings guidance, analysts moved to raise estimates after the second quarter results.
The 2010 Zacks Consensus Estimate jumped to $2.95 from $2.81 per share in the last 60 days.
This is earnings growth of about 23%.
Similar earnings growth is expected for 2011 as the Zacks Consensus rose 3 cents in the last 30 days to $3.46 per share. Earnings are forecast to grow another 17.3% in 2011.
Income
Gardner Denver pays a dividend currently yielding 0.4%. That isn't the largest dividend out there but it's bigger than the industry average, which pays, on average, no dividend at all.
Gardner Denver is a Zacks #2 Rank (buy) stock.
Read the May 11, 2010 article.
Update to Previous Growth & Income Zacks Rank Buy Stocks
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DDi Corporation (DDIC: 8.18 0.00 0.00%) is expected to grow earnings by over 800% in 2010 as demand remains strong from electronics manufacturers. Read the full article.
Pall Corporation (PLL: 35.15 0.00 0.00%) saw its industrial segment return to profitability last quarter as the global recovery took hold. Will it still see the growth when it reports its fiscal fourth quarter on Sep 14? Read the full article.
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